* Aid deal for Greece continues to dent the dollar
* China gold demand to double over next decade - WGC
* Coming Up: U.S. Feb personal income and consumption data
1230 GMT
(Updates prices)
By Maytaal Angel
LONDON, March 29 (Reuters) - Gold hit its highest in more
than a week on Monday due to strong physical buying and the
dollar's further fall against the euro after last week's aid
deal for debt laden Greece.
Spot gold <XAU=> rose as high as $1,112.65 an ounce, its
strongest since March 19.
At 1154 GMT, it traded at $1,110.45 versus $1,105.10 at New
York's notional close on Friday, when it rose more than 1
percent to regain the psychological level of $1,100.
U.S. gold futures for April delivery <GCJ0> added $6.1 to
$1,110.60 an ounce.
"The market thinks this Greek problem has been solved.
(Also) we saw excellent physical demand last week and it's still
continuing this morning," said Afshin Nabavi, head of trading at
MKS Finance.
"If we can get above the $1,115 area we should see further
short covering."
The euro edged higher versus the dollar on Monday after euro
zone leaders agreed a financial safety net for Greece late last
week, but the market remained wary with an upcoming Greece
sovereign bond issue seen as a key test. []
A weak dollar tends to boost gold's appeal as an alternative
asset to the U.S. currency. It also makes dollar-priced gold
cheaper for non-U.S. investors.
"Gold is attracting money in its own right as a currency.
Gold is still an alternative to currencies, which is helping to
keep prices buoyant," said Simon Weeks, managing director of
precious metals at ScotiaMocatta.
CHINA GOLD DEMAND TO DOUBLE
China's gold demand will double over the next decade from
current levels due to jewellery consumption and investment
needs, the World Gold Council said on Monday, in its first
report on the world's fastest growing user of the metal.
Demand from jewellery and investment reached a combined
total of 423 tonnes in 2009, the WGC said. []
China is the world's second-largest gold consumer after
India.
"Physical demand has been excellent. There's certainly been
a lot of demand from China ... you've got the wedding season
coming up in April, people are looking at that," said Weeks.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,124.647 tonnes as
of March 26, unchanged from the previous business day.
[]
Gold, seen as a safe haven asset, also gleaned support from
news that a two blasts had ripped through packed Moscow metro
stations on Monday, killing at least 34 people and wounding 18.
Moscow's prosecutor Yuri Syomin said suicide bombers were
behind the two blasts. []
In other precious metals, silver <XAG=> was at $17.13 an
ounce versus $16.85 at New York's notional close on Friday,
having earlier hit $17.14, its highest in more than a week.
Platinum <XPT=> was at $1,609 versus $1,594 while palladium
<XPD=> was at $461.00 versus $455.50.
Investors awaited the release of U.S. personal income and
consumption data for February, due at 1230 GMT, and the key U.S.
March non-farm payrolls, due on Friday, for clues on the outlook
for the U.S. economy and the dollar.
(Reporting by Maytaal Angel. Editing by William Hardy)
